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Nordea Bank completes share repurchase, holds over 11 million treasury shares

EditorAmbhini Aishwarya
Published 06/11/2023, 06:32 pm
© Reuters.

Nordea Bank announced on Friday that it has successfully completed the repurchase of 195,531 of its own shares (ISIN: FI4000297767) across multiple public trading venues at an average price of EUR10.10 per share, totaling EUR1,974,892.08. The bank's EUR1.0 billion buy-back program was first announced in April 2023 and authorized at the Annual General Meeting later that year.

The transactions were carried out under the Regulation No. 596/2014 of the European Parliament and Council of April 16, 2014 (MAR) and the Commission Delegated Regulation (EU) 2016/1052. The FX rates used were SEK to EUR 11.6985 and DKK to EUR 7.4617.

Following the completion of these transactions, Nordea now holds a total of over 11 million treasury shares for capital optimization purposes, and nearly five million additional treasury shares dedicated for remuneration purposes. The announcement was made by Morgan Stanley (NYSE:MS) Europe SE on behalf of Nordea Bank.

InvestingPro Insights

In light of Nordea Bank Abp (OTC:NRDBY)'s recent share buyback, it's worth noting some key insights from InvestingPro. The bank has demonstrated accelerating revenue growth, with a 29.5% increase in the last twelve months as of Q3 2023. This, coupled with a consistently increasing earnings per share, could signal a positive trajectory for the bank's financial health.

InvestingPro Tips also point out that the bank is trading at a low P/E ratio relative to near-term earnings growth, with a P/E ratio of 7.18. This could indicate that the bank's shares are currently undervalued. However, the tips also warn of low earnings quality, with free cash flow trailing net income, which could be a cause for concern.

Finally, the bank pays a significant dividend to shareholders, with a yield of 7.88% as of the end of 2023. This could be an attractive feature for income-focused investors. For more insights like these, check out InvestingPro's full suite of tips and data.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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